Home | Business
Has anyone tried submitting a SHORT SALE package before getting an OFFER? It is commonly said that short sales need to be accompanied with an offer to purchase the home, otherwise banks will not give it a second glance. Is this true or are there exceptions to this rule? An agent has attempted to put through a short sale submission to the bank before getting an offer to buy. The property has been on the market for several months now and it looks like she is just chasing the market price downward. It was discouraging to witness the price getting slashed for several consecutive months, however, no one wanted to put in an offer even though the price was an incredible deal. Jennifer found herself caught between a rock and a hard place because she was trapped with the short sale that can’t move anywhere until the moon and the stars lined up properly to suit the bank. The process of obtaining a short sale approval from the bank usually takes anywhere from 30 days to several months. During this time anything can change—the buyer can decide to cancel because the process is taking too long, interest rates could go up so the buyer backs out, the buyer may think that the seller is playing a game and holding out for a higher offer, the buyer may have already locked in a particular interest rate for their home purchase and would lose out on it due to the delays in waiting for final approval from the bank. What are the chances of moving this tedious journey along faster and get to the approval when it is needed? Is it possible to obtain a SHORT SALE approval without waiting out for a buyer? There is little debate that the banks stipulate that an offer is needed when turning in short sale packages. You will not be able to start the short sale process until the buyer signs a formal purchase contract. You can`t even deal with the "Loss Mitigation" department until you have an offer. The reason for this is that the banks will not negotiate against themselves by giving you upfront the reduced price they are willing to sell for. They want to know that they are negotiating with a buyer on the other end and that they are not just shooting themselves in the foot by prematurely agreeing to a price that could end up being lower than a buyer is willing to pay for the property. What options are available? Just like there are more than one way to eat a banana, there’s more than one way of getting out of this ditch. One way is to take drastic action to generate some quick leads. Drop the price to "turn some heads" so you can get an offer in. This may mean you drop the price lower than every other house listed in the area. You have to keep dropping the price until you get interest. Once you have the offer, submit everything to the bank. If the offer looks too low, the bank will counter and you will know where they stand and then readjust the price with the buyer from there. You can try changing the price every 2-3 weeks. Your goal is to get it sold, not to get the most money. Regardless of your list price, the bank is going to rely on their appraisals and broker’s price opinion (BPO) for their ultimate value of the property. So how you price the property at this time doesn’t really matter as long as you generate interest enough to get an offer. Thinking outside the box, you can use the very creative method of getting real estate investors who will submit offers that are low, but reasonable, just to get the bank talking. These investors usually are looking to get a good deal on a property so their offers will tend to be on the lower end, yet they are professionals at what they do and so when they turn in an offer to purchase, they have reviewed the home and know that it is something they will profit from when escrow closes. With the investor offer in hand, you can at least get the short sale negotiations started. Your job is to justify the price in the offer to the bank. With the offer, you can also get the appraisal, or BPO, started on the home to get the process rolling. These investor offers can be considered what I would describe as "surrogate offers" to start the process until another offer arrives. Then if you later locate a non-investor buyer who is willing to offer more for the home, you at least have not lost much time since you’ve already started working on the file with the bank. This strategy of the having an initial party stand in on the short sale to buy some time can also be applied in preforeclosure cases where time is running out and the trustee sale is imminent. At that stage, you want to do everything you can to try to postpone the sale so it doesn’t go off to auction and be gone forever.
Article Source: http://articles-mart.com
Experience real estate like you've never known before. Dave Clocker is a real estate investor who will teach you the Secrets That 99% Of The Individuals Out There Will Never Know About How To Almost Magically Generate Wealth Thru Real Estate. He has taken these creative strategies and combined them into fun and juicy videos, exclusive reports, and conversations with experts. Check more out at www.RealEstateWayToWealth.com
Please Rate this Article
5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
